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Political Risk Insurance Solutions

April 2019

1MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP

1. MIGA in the World Bank Group2. MIGA’s Political Risk Insurance3. MIGA Guarantee Examples4. MIGA’s Value Added5. MIGA’s Performance

Appendix• MIGA Underwriting Process• Other Project Examples• Award‐Winning Projects


World Bank Group

IBRDInternational Bank for Reconstruction and Development

IDAInternational Development Association

MIGAMultilateral Investment Guarantee Agency

Governments of Part II member countries with annual per capita income under $1,215

Increase foreign direct investment

Debt and equity investors in member countries

‐ Political Risk Insurance‐ Credit Enhancement

Est. 1945 Est. 1960

IFCInternational Finance Corporation

Promote private sector development

Investors in member countries

‐ Equity/Quasi‐Equity‐ Long‐Term Loans‐ Advisory Services

Est. 1956 Est. 1988

Role:

Clients:

Products:

Governments of Part II member countries with annual per capita income over $1,215

Support countries’ economic and institutional development

‐ Technical Assistance‐ Policy Advice

‐ Interest Free Loans‐ Loans with Interest

Shared Twin Goals: Eliminate Extreme Poverty and Boost Shared Prosperity





Inability to convert or transfer dividends or loan payments due to FX restrictions

Destruction or interruption of business due to political violence

Non‐honoring of arbitral award due to breach of contractual obligations

Nationalization or other discriminatory measures making the investor impossible to

Transfer Restriction and Inconvertibility Cover

War and Civil Disturbance Cover

Risks Faced by Investors and Lenders: Political Risk Insurance Solutions

Breach of Contract Cover

Expropriation Cover


MIGA’s Recent Innovations

BoC cover for projects with staggered government contracts

Segregated project risk from sovereign risk

Project bond rated 2 notches higher than sovereign risk

Project Country Page

Elazig Turkey 11

Tierra Mojada Mexico 12Helped project’s continuity while limiting government’s contingent liabilities

1

2


Climate Change Projects

Solar Project Country Page Programmatic approach to covering 12 solar IPPs

Assists Namibia’s first feed‐in‐tariff program

20‐year PPA with National Electric Power Co.

24MW expansion of existing project

44MW wind farm

Guaranteeing JBIC & Mizuho

Supporting Korean investment into Pakistan

Hydro

Wind

FiT Egypt 8

Ejuva Namibia 43

Adenium Jordan 36

Cerro de Hula Honduras 32

Eolo Nicaragua 34

Gulpur Pakistan 27

Rajamandala Indonesia 13





Project: Construction, operation & maintenance of green field solar Independent Power Producer facility.

Programmatic approval for 12 projects, total installed capacity 500MW.

25‐year PPA. Payment obligations of EETC guaranteed by Egypt gov’t.

MIGA cover:• $210m • Equity 15 years, Debt 20

years • Breach of Contract,

Expropriation , Currency inconvertibility & Transfer Restriction and War and Civil Disturbances.

Political Risk Insurance – World’s Largest Solar Park Supports Egypt’s Ambitious Effort to Deliver Reliable Power while Addressing Climate ChangeFeed in Tariff, Egypt

Solar PV Project company

GoE

Equity Sponsors

EBRDOtherDFIsIFC

Cost Sharing Agreement

(CSA)

Equity ShareholderLoan

EETC

Loan Agreement

(LA)

Network Connection

Contact (NCC)

Guarantee holderProject enterpriseObligor

ICBC

Loan Security Agreements

O&M

Government Guarantee PPA


Political Risk Insurance – Increases Cameroon’s Generation CapacityReduces Cost of Power GenerationNachtigal, Cameroon

Project: Development, construction and operation of a 420 MW Hydropower plant on the Sanaga River

MIGA cover:• €164.5m• 15 years• Dec. 2018• Breach of Contract

Guarantee holderProject enterprise

PPA

Guarantee

Obligor under BOC

EDF Intern.(40%)

DFIs

STOA(10%) 20%

Gov of Cameroon (15%)

Africa50(15%)

Nachtigal Hydro Power Company

AFC, AFD, CDC Group, DEG, EAIF, EIB, FMO,

OFID, Proparco

Offtake

Local Commercial Banks

Société Générale Cameroun, Standard Chartered Cameroun, Attijariwafabank – SCB,

BICEC

Eneo

L/C Bank #1

Sponsors

Gov of Cameroon Support

GoC

L/C Bank #2

Indemnity

Concession Agreement

Sonatrel(transmission co.)

Connection and Dispatch Agreement

Guarantee

Equity and Shareholder Loans

Debt


Project: Construction, operation and maintenance of 158.7 MW wind power farm

MIGA cover: • $149.7m in equity and

shareholder loan • 20 years• June 2018• Expropriation, Currency

Inconvertibility & Transfer Restriction, War & Civil Disturbance, Breach of Contract

Political Risk Insurance – West Africa’s largest Wind FarmImproves Senegal’s Energy Security and Diversifies Energy MixParc Eolien Taiba Ndiaye, Senegal

Lekela Power BV(Netherlands)

Lekela Power (Senegal) Holdings LTD (Mauritius)

100%

PETN Finances Ltd.(Mauritius Holding)

85‐95%

Projet Eolien Taiba Ndiaye “PETN”(Senegal)

100%

15‐5%

Debt

OPIC

EKF

Financing Agreements Government of Senegal

Guarantee Agreement

SenelecPower Purchase Agreement

L/C BankL/C

License

Senelec

O&MContract

EPCContract

EPS Contract

Interconnection Agreement


Shareholders’Agreement

Bruno Vigneron holding (Mauritius)

Jeannot Schlenitzauerholding (Mauritius)

Commission de Regulation du

Secteur d’Electricite

Vestas SenegalSARLU

Vestas Senegal SARLU

Vestas Mediterranean A/S


Political Risk Insurance – MIGA’s First Project in Myanmar First Reinsurance Structure with NEXIKDDI Summit Global Myanmar Company Limited (KSGM), Myanmar

KDDI CORPORATION(Japan)

Sumitomo Corporation(Japan)

KDDI Summit Global Singapore Pte. Ltd (KSGS)

(Singapore)

KDDI Summit GlobalMyanmar Company Limited

(KSGM)

Myanmar Government

Ministry of Communications and Information Technology

(MCIT)

Myanmar Posts & Telecommunications

(MPT)

ObligorGuarantee holderProject enterprise

Joint Operations

Project: Joint operationbetween MPT and KSGM to operate, upgrade, reactivate, and expand MPT’s fixed line and wireless telecom network

MIGA cover:• $406m• 10 years• August 2016• Transfer Restriction

NEXI

Reinsurance

Reinsurer


Political Risk Insurance – Creative PRI Solution Piercing Sovereign CeilingAllowed Client Company to Issue Bonds Rated Two Notches Above Sovereign RatingELZ Sağlık Yatırım A.Ş., Turkey

Project: Construction of 1,038‐bed hospital, developed under Turkish Health PPP, led by the Ministry of Health to renovate the country’s public hospital infrastructure.

Financing: Debt financing raised through bond issuance. A1 Bonds supported by innovative liquidity‐backed PRI from MIGA & EBRD. Covered bonds rated above investment grade ‐ Baa2 (Moody’s). A2 Bonds (IFC) did not benefit from enhancement.

MIGA cover: Equity, quasi‐equity and debt:• $326m• 20 years • December 2016• Expropriation, Currency

Inconvertibility & Transfer Restriction, Breach of Contract

ObligorGuarantee holderProject enterprise

Sila‐Sam‐TTT Rönesans Meridiam

20.0% 43.75% 36.25%

Borrower SecurityTrustee

IssuerSecurityTrustee

ELZ SağlikYatirim A.S.

(Borrower/SPV)

Mgmt. Services Co(Meridiam/ Ronesans)

Ministry of HealthTurkey

P1 & P2 Service ProviderFacilities Management Co(JV of Ronesans, Sila, Sam)

Designers, Consultants,

Subcontractors

EPC ContractorRMI Ronesans MedikalTaahhut Insaat A.S

EPC Contract

Service Agreement

CSF (EBRD)ELZ Finance S.A.

(Issuer)

20‐year A2 Bond (IFC)

RSF (EBRD)3

18‐year A1A Bond

20‐year A1B Bond

Project Agreement

Availability Payments

Mgmt. Service

Agreement

Debt

Bonds

Bond Trustee

Liquidity facilities

EquityQuasi‐Equity


Project: Greenfield development, construction and operation of 875 MW combined‐cycle gas power plant supporting Mexico’s energy reform, increasing private participation, and reducing generation costs

Capacity and electricity to be sold to Comisión Federal de Electricidad Calificados under a 20 year PPA, with unique structure designed to reduce contingent liabilities for CFE and risk for investors

Developed by Fisterra Energy of Spain, wholly‐owned by the Blackstone Group

MIGA cover: Equity, quasi equity, and/or shareholder loans:• $963m (includes standby for potential

future investments)• 15 years• June 2017• Expropriation, Currency Inconvertibility

& Transfer Restriction, War & Civil Disturbance, Breach of Contract

CFEnergia(Gas Supply)

Ciclo CombinadoTierra Mojada

(Project Enterprise)

Comisión Federal de Electricidad Calificados(Electricity Off‐taker)

Comisión Federal de Electricidad (CFE)

Non‐Shareholder Loans

PPA

CFE Transmisión(Interconnection Agreement)

Equity, Quasi‐Equity and/or Shareholder

Loans

Fisterra Energy

Guarantee

Guarantee

Commercial Lenders

Political Risk Insurance – Innovative PPA Helped Ensure Project’s Continuity While Reducing Government’s Contingent LiabilitiesTierra Mojada, Mexico

EPC Contractor

Operations & Management

Services Agreement



Kansai(Japan)

PT PLN(Indonesia)

IP(Indonesia)

PT Putra Indotenaga

KPN(Netherland)

REP

JBIC

HEC PT PLN IP Kansai

100% 100%

100%

51%49%

Equity Debt

O&M AdvisoryEPC

Political Risk Insurance – One of the First Indonesian PPAs Without Sovereign Support Guaranteeing JBIC & MizuhoRajamandala Hydropower Project, Indonesia

Project: Development and operation of a 47 MW run‐of‐the‐river hydropower plant on a BOT basis

30 year PPA with PT Perusahaan Listrik Negara (PT PLN), a state‐owned enterprise

MIGA cover: • $200m• 19 years • August 2014• Expropriation, Currency

Inconvertibility & Transfer Restriction, War & Civil Disturbance, Breach of Contract of SOE

Mizuho

PPA O&M Agreement



Political Risk Insurance – Increased Lending Through Release of Regulatory CapitalSociété Générale S.A. in Serbia

Equity

Project: Reduction of risk weighting on SocGen’sconsolidated balance sheet of mandatory reserves maintained by the subsidiary with the National Bank of Serbia

Reduces deleveraging pressures and creates room to support additional lending by subsidiaries

MIGA cover: • €150m• 10 years• 2013• Expropriation of mandatory

reserves maintained in Serbia’s Central Bank

Mandatory Reserves held by National Bank of Serbia

Risk Weighted Assets for CET1

Ratio

National Bankof Serbia

Société Générale(consolidated level)

Société Générale Banka Srbija a.d. Beograd

Mandatory Reserves






Strong pre‐claim management

Highly rated

Financially stable

Strong risk appetite

Environmental and social risk mitigation

• Manages risks in pre‐claims (100+ pre‐claims managed among 845+ projects. Two claims paid for expropriation, eight for war and civil disturbance.)

• Leverages World Bank network

• Recognized as highly rated multilateral institution by Basel Committee

• Efficient economic capital consumption

• Operates in challenging markets (lower income, conflict affected, and fragile states)

• Longer tenors (15 years)

• Best practices in environmental and social standards

MIGA’s Value Added





MIGA has more than doubled issuances to deliver development impact at scale

Expected development results (FY14‐FY18Q2)

2+ billionUSD in local taxes and fees

21+ millionpatient consultations

38+ millionpeople with access

FY18

2.1 2.7 2.8 2.8 4.33.2 4.8

Annual Gross Issuance, USD billions

5.3

FY16FY15FY14FY13FY12FY11 FY17


Supported 845+ projects in 110 countries

MIGA’s Gross Exposure (US$ billion in fiscal year)

7.3 7.7

9.110.3 10.8

12.4 12.5

14.2

17.8

21.2

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18


Expected Development Results FY18


MIGA projects support WBG’s Twin Goals as well as multiple SDGs Core areas of expected development results, FY14‐FY18

Power ‐ Access46.2 million people with access

Growing economies$1.9 billion in locally procured goods

Access to Finance$16.6 billion dollars in finance enabled for SMEs

Tax Revenue$3.1 billion in local taxes and fees

Jobs96k direct jobs created1

21.5 million patient consultations3

Power – Generation Capacity36k GWhs generated annually

Greenhouse Gas Reduction 4.2 million metric tons prevented2

1 Permanent and temporary jobs2 GHG emissions avoided are being accounted from FY17 onwards3 In FY14 and FY16 there were no hospital projects

Access to Healthcare





Underwriting Process

Preliminary Application

Definitive Application (fees apply)

Initial Screening Meeting

Underwriting• Analysis of development impact• Environmental and social review • Integrity checks• Economic, financial viability assessment• Pricing and reinsurance

Monitoring/Evaluation

Second Internal Review Meeting

Board Approval

Contract Preparation & Signing

Host Country Approval

PublicDisclosure

Investor


Senior Management Team, Washington DC

Keiko HONDAExecutive Vice‐Presidentand CEO+1 202 473 2503 [email protected]

S. Vijay IYERVice President and COO+1 202 473 [email protected]

Sector Managers, Washington DCMarcus WILLIAMSEnergy and Extractive Industries +1 202 473 1023 [email protected]

Olga SCLOVSCAIAFinanceand Capital Markets +1 202 458 2823 [email protected]

Elena PALEIInfrastructure ‐Telecom Transport and Water +1 202 473 4642 [email protected]

MIGA – Regional offices

Santiago ASSALINIDirectorFinance and Risk+1 202 458 5060 [email protected]

Jae Hyung KWONHead North Asia (ex‐Japan)+82 (0) 32 713 [email protected]

Chris MILLWARDHead Europe, Central Asia, Middle East, and North Africa+33 1 40 69 31 [email protected]

Hoda MOUSTAFAHeadAfrica+1 202 527 [email protected]

Merli BAROUDIDirector Economics and Sustainability+1 202 473 [email protected]

Nabil FAWAZAgribusiness and General Services+1 202 473 8437 [email protected]

Tim HISTEDHead South and Southeast Asia+65 9029 [email protected]

Layali ABDEENSenior UnderwriterMiddle East and North Africa+1 202 247 [email protected]

Muhamet FALLAssociate Directorand Chief Underwriter Operations+1 202 458 2695 [email protected]

Aradhana KUMAR‐CAPOORDirector and General Counsel +1 202 473 5952 [email protected]

Lin CHENGRepresentativeChina+86 10 [email protected]

Sarvesh SURIDirector Operations

+1 202 458 9760 [email protected]

Shuichi HAYASHIDAHeadJapan+81 3 3597 [email protected]

Olga CALABOZOHeadLatin America & the Caribbean+1 202 473 [email protected]


1. Asia & Pacific2. Europe & Central Asia3. Latin America & the Caribbean4. Middle East & North Africa5. Sub‐Saharan Africa

Selected Project Examples by Region


Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance, Breach of Contract CoverOyu Tolgoi, Mongolia

Oyu Tolgoi LLC

Project: One of the largest underground copper mining deposits

Sponsors: Rio Tinto and Turquoise Hill Resources Ltd.

Covered Lenders: ANZ Banking; BNP Paribas; CIBC; Credit Agricole Corporate and Investment Bank; HSBC Bank; ING Bank; Intesa Sanpaolo; National Australia Bank; Natixis; Societe Generale; Standard Chartered Bank; Sumitomo Mitsui Banking Corp.; Bank of Tokyo‐Mitsubishi UFJ

MIGA cover for Investment Agreement between project enterprise and Mongolia:• $1b• 12 years• 2015

DFIs/ECAs Tranche

Guarantee holderProject enterprise and obligor

ErdenesMGL LLC(Mongolia)

Investment Agreement

Management Agreement

51%

Rio Tinto (UK)

Turquoise Hill Resources Ltd.

(Canada)

Oyu Tolgoi Netherlands BV

Senior Lenders(Commercial Tranche)

66% 34%

Government of Mongolia

100%


Political Risk Insurance – Breach of ContractGulpur Hydropower, Pakistan

GoP

Equity Financing 25%

DFI LendersKOSEP/Daelim/Lotte(Korea)

Debt Financing 75%

BoC

IAGuarantee

IAWUA PPA EPC O&M

Project: Construction, operation, and maintenance of a 102 MW run‐of‐the‐river hydropower plant under BOOT

MIGA cover:• $83m• 15 years• 2015• BOC covers Pakistan IA

and Pakistan Guarantee, triggered by breaches under AJK IA, WUA & PPA

MIRA Power Limited

Azad Jammu & Kashmir

Governments

NTDC State Owned Utility Daelim/Lotte KOSEP






ADN PPP SağlikYatirim A.S.

Meridiam

Implementation Agreement

Rönesans Sila Sam

40% 40% 10% 10%

Ministry of HealthTurkey Availability

Payments

DFI Lenders

EBRD, DEG/Proparco

Commercial Lenders

EPC ContractorRMI Ronesans MedikalTaahhut Insaat A.S

P1 & P2 Service ProviderFacilities Management Co(JV of Ronesans, Sila, Sam)

P3 Service ProviderRonesans Sub.

Designers, Consultants, Subcontractors

EPC Contract Service Agreements

Equity

SHL

Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, Breach of ContractAdana Integrated Health Campus, Turkey

Project: design, construction, financing, and maintenance of a new integrated health campus in the southern Turkish city Adana, structured as a PPP

MIGA cover:• $158m• 20 years • 2014



Political Risk Insurance – Capital Optimization, Financial Institutions and Capital MarketsRaiffeisen Bank International AG, Albania, Belarus, Bosnia and Herzegovina, Kosovo, Serbia

RBI(consolidated level)

Bank of AlbaniaRaiffeisen sh. a. Mandatory

Reserves

Equity

Project: Reduction of risk weighting on RBI’s consolidated balance sheet of mandatory reserves maintained by subsidiaries with their respective central banks

Reduces deleveraging pressures and creates room to support additional lending by subsidiaries

MIGA Equity cover: • €458m• 3 years• 2015• Expropriation of funds

Mandatory Reserves held by Central Bank of

Subsidiaries

Risk Weighted Assets for CET1 Ratio

National Bank of the Republic of Belarus

Mandatory Reserves

Central Bank of Bosnia and Herzegovina

Mandatory Reserves

Raiffeisen Bank KosovoMandatory Reserves

National Bankof SerbiaRaiffeisen banka a.d. Mandatory

Reserves

Raiffeisen BANK d.d.

Priorbank JSC

Central Bankof Kosovo






Project: 24MW expansion of existing 102MW wind power project

Long term Operation Agreement and State Guarantee covering PPA with national utility ENEE

Eliminates 280,000 tons of carbon emissions per year

MIGA Equity cover: • $82m• 20 years • 2013

Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance, Breach of Contract CoversCerro de Hula Wind Power Project, Honduras

EquityGlobeleq Mesoamerica Energy S.A.(Panama)

Globeleq Holding Americas Renewable Ltd.

(Guernsey)

Mesoamerica Power Ltd. (BVI)

30%70%

EPC Contract

O&M Contract

Energía Eólica de Honduras S.A.

EPC ContractorGamesa Wind (USA)Iberdrola (Mexico)

DFI FinancingUS EximBank

Central American Bank for Economic Integration

Empresa Nacional de Energía Eléctrica

Debt

Equity 100%

O&MGamesa Wind (USA)Iberdrola (Mexico)

Power Purchase Agreements



Cotecna S.A.(Switzerland)

0.25% Shareholding& Shareholder Loan

UDP Cotecna‐Smiths

5%95%

100%

99.75%

Smiths HeimannGmBH

Provision of Services

Assignment of Concession Contract

Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance, Breach of ContractCotecna de El Salvador S.A. de C.V., El Salvador

Project: Provision of import and export verification services on behalf of government at 8 locations (ports, airports, land borders)

10‐year BOT concession increases import/export efficiency while reducing opportunities for fraud and evasion of tariffs

MIGA cover: • $24m• 12 years • 2013

CotecnaPanama S.A.

Cotecna de El Salvador S.A. de C.V.

Government of El Salvador

Concession Contract with Government of

El Salvador



Project: Construction and operation of 44 MW wind farm in Rivas Province on the shores of Lake Nicaragua

30‐year power generation license from government. 20‐year PPA with DISSUR‐DISNORTE


Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance Eolo de Nicaragua S.A., Nicaragua

Globeleq Mesoamerica Energy (Wind) Limited

(Bermuda)

EPC Contract

O&M Contract

EPC Contractor & OperatorGamesa Eolica

(Spain)

DFI FinancingFMO (Netherlands)Proparco (France)DEG (Germany)

Power Purchase Agreements

Debt

Equity 100%

Globeleq Holding Americas Renewable Ltd.

(Guernsey)

Mesoamerica Power Ltd. (BVI)

30%70% Equity

Eolo de Nicaragua S.A.I)

DISSUR‐DISNORTE






Political Risk Insurance – Expropriation, Transfer Restriction, War and Civil Disturbance, Breach of ContractAdenium Solar, Jordan

Project: Development, construction, and operation of four photovoltaic power plants

20‐year PPA with National Electric Power Company (NEPCO), Jordan SOE

MIGA cover: • $16m • 20 years• 2015

AdeniumSolar Jordan(Cayman)

Zahrat Al Salam for Energy Generation

Clean Energy Concepts (Jordan)

Bank Al Etihad

Corys Environmental Investments LLC

(UAE)

Yasmeen Solar Jordan LLC (Cayman)

Adenium Energy Capital Ltd. (Cayman)

Jordan Solar One (Cayman)/Jordan

Al Zanbaq for Energy Generation

Al Ward al Joury for Energy Generation

Kingdom Electricity Company

38.2% 16% 45.8%

60% 60% 60% 71%

5%

10%30%10%30%10%30% 10%14%



Political Risk Insurance – Expropriation, Currency Inconvertibility and TransferRestriction, War and Civil Disturbance Regional Telecom, Iraq

Regional TelecomVendor FinancingAlcatel‐Lucent

International (France)

Individual Investor

Individual Investor

50%50% Equity

Project: Creation and expansion of Regional Telecom, high‐speed broadband and mobile internet service provider in Iraq, financed by Alcatel‐Lucent International through a vendor financing facility




Albemarle Corporation

(USA)

100% Equity

Albemarle Holding Co. Ltd(Turks & Caicos)

Jordan Bromine Company(Jordan)

Arab Potash Company(Jordan)

50% Equity50% Equity

Political Risk Insurance – Expropriation, War and Civil Disturbance CoversAlbemarle and Arab Potash Company, Jordan

Project: Expansion and operation of active industrial salt manufacturing plants in Jordan




Project: Expansion of existing wastewater treatment plant at AS‐Samra, by Samra Wastewater Treatment Plant Company

MIGA cover:• $13m• 20 years• 2013

Political Risk Insurance – Breach of Contract CoverAS Samra Wastewater Treatment Expansion Project, Jordan

Suez Morganti

Samra WastewaterTreatment Plant Co.

$205.3 mCommercial Banks

MOF

Project Agreements

Funds

Guarantee Agreement

30% Equity 50% Equity20% Equity

Grant Funds

Loans

IDI

MCC

MWI



Project: New packaging plant with initial annual production capacity of 15,000 tons of plastic packaging

MIGA cover: • $26m• 15 years (equity); 10

years (loan guarantee)• June 2014• Expropriation, Transfer

Restriction, War and Civil Disturbance

Political Risk Insurance – Supporting Private Investment During Political InstabilityElif Global Packaging S.A.E, Egypt

Elif Global(Turkey)

Elif (Egypt)

Elif Loan Guarantee*

Landesbank Baden‐Wurttemberg (LBBW)

1% equity 99% equity

*Elif Plastik will guarantee the LBBW loan Elif Plastik and Elif Global have jointly guaranteed the IFC loan

Elif Plastic(Turkey)

$15.5 M A loan

€8.3 M loan






Project: Design, construction and operation of float glass manufacturing plant ‐ 500 ton per day capacity.

MIGA cover: • $71.8m (shareholder &

non‐shareholder loans plus equity)

• 5 and 10 year tenors• December 2017 & May

2018• Expropriation, Currency

Inconvertibility & Transfer Restriction, War & Civil Disturbance

Political Risk Insurance – Manufacturing in Nigeria Diversifies growth in a non‐oil sector & and reduces import of float glassChina Glass, Nigeria


CNG Glass (Nigeria) FZE(Nigeria)

CNG (Nigeria) Investment Limited(Hong Kong SAR, China)

Equity (100%)

China Development BankDebt

US$ 26.0 million

US$38.5 millionShareholder loanUS$2.0 million

CNG International Investment Limited(Hong Kong SAR, China)

China Glass Holdings Limited(Bermuda)

100%

100%



EPC O&M contract

Power Purchase Agreement

Equity

Ejuva Solar(Project Enterprise)

Consolidated Power Maintenance (Pty)

Ltd

Local Investors

NamPower

34%66%

Debt

Consolidated Power Projects Namibia

(Pty) Ltd

CIGenCO

Investec

Project: Two 5MW solar projects

MIGA cover: • $2.3m equity plus

expected ~$15m debt • Projects funded in

Rand• 15 years• December 2017• Expropriation,

Currency Inconvertibility & Transfer Restriction, War & Civil Disturbance, Breach of Contract

Political Risk Insurance – MIGA’s First Project in Namibia Part of Namibia’s First Renewable Feed‐In Tariff ProgramEjuva Solar, Namibia


4.8%

Project: 3‐year master contract leading to 3 specific investment projects (farming wheat, maize, soy, and barley)

MIGA cover: • $50m• 15 years for specific

projects• 2010

Master Contract for Private Equity Investments – Expropriation, Transfer Restriction, War and Civil Disturbance, Breach of Contract Chayton Africa, Zambia

Government of Zambia andZambia

Development Agency

Chayton Africa

Zeder/PSG(South Africa)

Norfund(Norway)

ChaytonManagement

21.8% 73.4%

Chobe AgrivisionCompany Ltd.

Commercial Lenders

Project #1

100% Equity

Equity

Investment Promotion & Protection Agreement

Project #2 Project #3



PAIDF = Pan African Infrastructure Development Fund AFC = Africa Finance CorporationFMO = Nederlandse Financierings‐Maatschappij voor Ontwikkelingslanden N.V.BMCE = BMCE Bank International Plc

Multilateral Lenders

Concession Agreement with Minimum Revenue Guarantee

Government of Côte d’Ivoire

AfDB, BOAD, ECOWAS

Total CI

Banque Nationale

d’InvestissementSOCOPRIM S.A.

Local Equity Providers

Political Risk Insurance – Expropriation, Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance, Breach of ContractHenri Konan Bédié Bridge, Abidjan, Côte d’Ivoire

Project: Design, construction, and operation of toll bridge in Abidjan

First PPP in Côte d’Ivoiresince civil war and one of the first in West Africa

MIGA cover: • All private sector

participants in transaction on their equity and subordinated loans

• $145m• 10‐15 years• 2012

Senior loans

Subordinated loansEquity Senior loans

Bouygues

PAIDF

AFC

FMO

BMCE

AFC

Bouygues

PAIDF

AFC



Political Risk Insurance – Breach of ContractThika Power, Kenya

EPC O&M contract

Govt. of Kenya

KPLC

Indemnity

Guarantee

Reimbursement agreements

Letter of Support

L/C

Power Purchase Agreement

Equity

Thika Power Ltd.(project enterprise)

MAN Diesel + Melec Power Gen

MAN Diesel + Turbo France SAS

L/C Bank

Melec Power Gen (BVI)

Minority investor

AfDB

ABSA Capital

Project: Construction of heavy fuel‐oil plant near Nairobi (87 MW)

20‐year power purchase agreement with Kenya Power and Lighting Co.

MIGA cover: • $62m• 15 years• 2012



Political Risk Insurance – Expropriation, Transfer and Convertibility, War and Civil Disturbance, Breach of Contract CoverAzura IPP, Nigeria

Sponsors

AzuraEdo International

Mauritius

Azura Power West AfricaLimited

Project: 459 MW open‐cycle gas power plant

Sponsors: Amaya Capital; American Capital Energy & Infrastructure; Aldwych Azura; African Infrastructure Investment Fund 2 Power; Asset & Resource Management

Covered Lenders: Siemens Bank, London Branch; KfW IPEX‐Bank; FirstRand Bank (acting through Rand Merchant Bank); Standard Bank of South Africa

20 year PPA with Nigerian Bulk Electricity Trader backed by a Put/Call Option (PCOA) Agreement with FGN

MIGA cover for equity, commercial debt, and hedging instruments

• $492m• 12‐15 years• Dec. 2015

Debt Cover & Interest Rate Swap

Int’l Commercial Lenders

DFIs

FGNEquity & Quasi‐Equity Cover PCOA

L/C Bank

NBETPPA

Reimbursement Agreements

Indemnity

Guarantee

Local Lender

Senior & Mezzanine Debt

Senior Debt

Senior Debt

Guarantee



Award‐Winning ProjectsGuaranteed by MIGA

Oil and Gas Deal of the YearOCTP, Ghana

Deal of the Year 2016Elazig Hospital , Turkey

African Power Deal of the Year 2012Azito Thermal Power Plant & Expansion, Côte d’Ivoire

Best African ECA Finance Deal of the Year 2016OCTP, Ghana

Deal of the Year 2014 São Paulo Sustainable Transport, Brazil

Deal of the Year 2013 Cambambe Hydropower, Angola

Americas Deal of the Year 2013Panama Metro Line One

Asia‐ Pacific Deal of the Year 2012Ashuganj Power Station, Bangladesh

Deal of the Year 2012Passenger‐Car Ferry TANIT, Tunisia

Deal of the Year 2012Istanbul Metro

Best Deals of the Year 2015Oyu Tolgoi, Mongolia

Multi‐Sourced Financing 2015Azura‐Edo, Nigeria

Best Asia‐Pacific Deals of the Year 2015Mira Power Ltd. (Gulpur Hydro), Pakistan

Power Deal of the Year 2012Azito Thermal Power Plant & Expansion, Côte d’Ivoire

Turkish Deal of the Year 2016Elazig Hospital, Turkey

African Transport Deal of the Year 2012Henri Konan Bedié Bridge, Côte d’Ivoire

Best Infrastructure Financing: Central America 2015Corredor Turistico, Honduras

Beyond Business Awards 2012Chayton Atlas Investments, Zambia

Deal of the Year 2015Senegal Swap 2

I N S U R I N G I N V E S T M E N T S E N S U R I N G O P P O R T U N I T I E S

April 2019

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Documents

Political Risk Insurance Solutionskafalat.com.lb/sites/all/themes/kafalat/images/session... · 2019-10-21 · DEG, EAIF, EIB, FMO, OFID, Proparco Offtake Local L/CCommercial Banks